Canada Takes Steps to Secure Soybean Supply Chain with New Soy Powder Pilot Facility – vegconomist
Protein Industries Canada has announced a new initiative aimed at increasing the domestic processing of Canadian-grown soybeans, in partnership with Alinova Canada Inc., Marusan Ai Co., Earth’s Own Foods, and YOSO (Flamaglo Foods).
The project, which will establish a pilot-scale soy powder facility in Ontario, is expected to add value to Canada’s soybean crops, which are primarily exported for processing abroad.
“Canada’s agriculture sector has a strong reputation for high-quality crops, and we can build on this by bringing the processing of those crops back home to Canadian soil”
Alinova Canada Inc., a joint venture between DJ Hendrick International Inc. (DJHII) and Marusan Ai Co., will lead the project to develop and commercialize a new soy powder. This effort builds on the success of a previous Protein Industries Canada initiative, which explored the feasibility of a commercial soy powder processing plant in Eastern Canada.
The new facility will be located in Ontario, which has high soybean production, and will focus on product development and market testing, particularly targeting Japan as a key export market.
The project is expected to create significant opportunities for Canada’s agriculture and food sectors by retaining more of the value from soy crops within the country. Currently, the majority of Canadian soybeans are exported raw for processing overseas. Bringing processing operations to Canada is seen as a way to enhance the competitiveness of Canadian soy products on the global stage, with Japan identified as a key market due to its established demand for soy-based products.
“Canada’s agriculture sector has a strong reputation for high-quality crops, and we can build on this by bringing the processing of those crops back home to Canadian soil. Value-added processing and whole-seed utilization here at home will secure our position as a leading supplier of high-value ingredients and food products, while providing families here in Canada, and around the world with a new selection of high-quality protein options,” said Kassandra Quayle, CFO of Protein Industries Canada.
Elevating the value of Canadian-grown soybeans
As part of the project, Earth’s Own and Flamaglo Foods will begin testing small batches of the new soymilk powder in products for Canadian grocery stores. Once the pilot-scale facility is operational, Alinova Canada Inc. and Marusan Ai Co. will work to scale up production and further assess the commercial potential of the soymilk powder in Japan. The total investment in the project amounts to $23.9 million, with Protein Industries Canada contributing $6.7 million and the remaining funding provided by the project partners.
David Hendrick, Executive Vice President of Alinova Canada Inc., spoke on the long-standing tradition of exporting non-GMO soybeans from Eastern Ontario, noting that this project represents an opportunity to elevate the value of Canadian-grown soybeans through domestic manufacturing.
“We intend to build on our relationships with growers in Eastern Ontario, our soymilk partner in Japan and the two Canadian soy food formulators joining on this initiative to make this manufacturing company a reality for Morrisburg, and a contributor to our community well-being,” Hendrick said.
Protein Industries Canada, one of Canada’s five Global Innovation Clusters, and its members are working to embrace the $25 billion opportunity in Canada’s ingredient manufacturing, food processing, and bio-product sectors.
As part of this initiative, Protein Industries Canada has been very active in investing in Canadian innovation projects this year, including those in the alternative seafood sector, oat and pulse ingredients for the snack industry, hemp and sunflower proteins, lupin flour for dairy alternatives and fat substitutes, and its recent $24.5 million plant-based food development project.
Preempting a global shortage
Hiroyuki Inagaki, president of Marusan Ai Co., highlighted the global demand for plant-based protein, noting the risk of a shortage and the potential for this project to address that need. “We predict the possibility of a global shortage. We have discussed this possibility with our Canadian partner.
“We have a plan to mitigate this risk by working with Eastern Ontario non-GMO soybean growers, and two Canadian plant protein formulation partners. We believe that together […] we can manufacture a novel made-in-Canada soymilk powder ingredient and find many food product applications.”